5-Star Bargain Stocks Poised to Bounce Back: Reinsurance Group of America

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, life and health reinsurance company Reinsurance Group of America (NYS: RGA) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Reinsurance Group of America's business and see what CAPS investors are saying about the stock right now.

Reinsurance Group of America facts

Headquarters (founded)

Chesterfield, Mo. (1973)

Market Cap

$3.9 billion

Industry

Reinsurance

Trailing-12-Month Revenue

$9.5 billion

Management

CEO Albert Woodring
CFO Jack Lay

Return on Equity (average, past 3 years)

7.7%

Cash / Debt

$1.6 billion / $2.3 billion

Dividend Yield

1.8%

Competitors

Assicurazioni Generali
Berkshire Hathaway
Generali Deutschland


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 93% of the 115 members who have rated Reinsurance Group of America believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those bulls, dch111, tapped the company's recent earnings miss as a solid long-term bargain opportunity:

Trading near historically low P/E while it has been growing revenue and book value over the past decade. This earnings setback caused by a rise in U.S./Australia claims should be temporary, and this looks like a good entry point for a solid stock in an industry that isn't going away.

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Reinsurance Group of America may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article 5-Star Bargain Stocks Poised to Bounce Back: Reinsurance Group of America originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of Berkshire Hathaway. Motley Fool newsletter services recommend Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Portfolio Basics

What are stocks? Learn how to start investing.

View Course »

Asset Allocation

Learn the most important step in structuring an investment portfolio.

View Course »

Add a Comment

*0 / 3000 Character Maximum